Fund Settlement

Definition ∞ Fund settlement refers to the final and irreversible transfer of assets between parties in a financial transaction. In traditional finance, this process ensures that both sides of a transaction have fulfilled their obligations, typically involving the movement of money or securities through a clearing house or central bank. Within blockchain contexts, fund settlement occurs when a transaction is confirmed and added to the distributed ledger, making the asset transfer final and immutable. The speed and cost of this process are key performance indicators for payment systems.
Context ∞ The efficiency of fund settlement is a critical topic in crypto news, particularly concerning cross-border payments and decentralized finance applications. Blockchain technology offers the potential for near-instantaneous and lower-cost settlement compared to traditional systems, driving innovation in wholesale and retail payment solutions. Regulatory bodies are examining how digital currencies and distributed ledgers can improve or replace existing settlement infrastructures.